The Dockside Inn Has Net Income for the Most Recent

question 93

Multiple Choice

The Dockside Inn has net income for the most recent year of $8,450. The tax rate was 38 percent. The firm paid $1,300 in total interest expense and deducted $1,900 in depreciation expense. What was the cash coverage ratio for the year?

• A)10.48 times
• B)11.48 times
• C)12.39 times
• D)12.95 times
• E)13.07 times

Analyze and compare financial statements using common-sized financial statements and ratio analysis.

Understand the presentation and significance of accumulated other comprehensive income within financial statements.

Comprehend the significance of inventory turnover and days’ sales in inventory as measures of efficiency and liquidity.

Appreciate the utility of financial analysis tools in making comparative evaluations across companies or time periods.

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Definitions:

Suspensory Ligaments

Fibrous tissues that support an organ or structure, such as the lens of the eye, keeping it in place.

Ciliary Body

A part of the eye that includes the ciliary muscle, which controls the shape of the lens for focusing, and the ciliary processes that produce aqueous humor.

Optic Nerve

The optic nerve is a crucial part of the eye and visual system, transmitting impulses from the retina to the brain to produce vision.

Ciliary Muscles

A ring of smooth muscle fibers in the eye's middle layer that adjusts the lens's curvature to focus on objects at varying distances.